Author: james Carter
• The ASX 200 had another strong day finishing up 49 points (0.83%) to 5983.• The new bid for iiNet (IIN) by M2 Group (MTU) set the stock racing. IIN had a high of $10.16 and a low $9.57, finishing the day at $9.80 + (0.83%)• The Material Sector was the strongest in the market by far after the continued strength in Iron Ore and Oil over the weekend.• The Banking Sector finished strongly with Commonwealth Bank (CBA) +62c (0.67%)to $92.72, National Aust. Bk (NAB) +38c (1%) to $38.46 and Westpac (WBC) +43c (1.12%) to $38.85. However Aust. New Zealand Bk (ANZ) finished down -14c (0.39%) to $35.58.
• The ASX 200 had a strong day finishing points higher (+1.5%) at 5933 after trading as high as 5935.• The Materials sector was in full swing today, with BHP Billiton (BHP), RIO Tinto (RIO) and Fortescue (FMG) rallying strongly after another strong move in Iron Ore overnight.• RIO Tinto (RIO) rallied 1.49c (+2.65%) to $57.79. BHP Billiton (BHP) rallied 0.99c (+3.19%) to $32.050 and Fortescue rallied +0.12c (+5.74%) to $2.21.• The Banking Sector shook off its recent selling and rallied on the back of imminent results due in early May. ANZ Bank (ANZ) rallied Commonwealth Bank (CBA) National Bank (NAB) and Westpac Bank (WBC)
Over the last two trading sessions we have seen Iron Ore rally 7.5% and at the same time Australian short term interest rates have been slowly edging higher. The recent relative sector performance we have seen from Australian equities is something not witnessed in a long time:
**As we remember the fallen tomorrow, the Weekend Report will be released on Sunday.
The ASX 200 had a relatively quiet time following a strong lead from overseas markets. The index finished the day’s session 7.5 points higher (+0.13%) at 5845 after trading as high as 5849.
Thank you to those who attended last night’s Webinar and apologies if you had trouble logging in as our limits were exceeded due to an excess in demand. A recording is available here.
• The ASX 200 had descended, ending 35 points (-0.6%) lower to 5838, driven by the inflation data reported this morning – in line with expectations.• The banking sector underperformed as the December Bank Bills are now factoring a possibility of no interest rate cut at all for the year. Commonwealth Bank (CBA) closed 66c lower (-0.7%) at $91.12.• High yielding, defensive stocks, such as Telstra (TLS) closed 6c higher (+1%) to $6.25• Fortescue Metals (FMG) rallied 1.9% at $1.90.5 despite S&P lowering its credit rating due to Iron Ore downturn.
I look forward to answering lots of your questions during today’s Webinar!
• The ASX 200 had a choppy session, ending 39 points higher (+0.7%) at 5872 after trading as high as 5888.• The banking sector faded from its morning rally, despite comments from the RBA Minutes being no different from what most investors have expected – another rate cut this year is not off the agenda. • RIO Tinto (RIO) rallied 84c (+1.5%) to $55.50 even after surprising investors its quarterly numbers. – A 12% fall in iron ore exports! • The battered Copper-gold company, OZ Minerals (OZL) rallied 6.2% to $4.13 after pleasing investors with its updated strategy and quarterly report.• We look forward to hearing your questions in our webinar presentation at 4.30pm!
The majority of questions I am receiving, unsurprisingly, are around the depressed Iron Ore sector and in particular Fortescue Metals (FMG). Unfortunately, investors prefer to buy stocks that are falling as opposed to ones at highs, which has a negative correlation to performance. I know I have discussed this subject a number of times over recent weeks, but a few thoughts crossed my mind over the weekend that made me want to clarify exactly how I see this space at present.
Really bullish, there's more to go in the reflation rally
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